Burgess v Rawnsley [1975] Ch 429

Court of Appeal

Basic Facts: H and W, who became close, decided to buy a house, with each providing half the purchase price. H bought the house in joint names in contemplation of marriage, but W later decided against marriage and sought to live separately. H agreed to buy W's share, but W later refused. H died before the transfer could occur.

Issue for the Court: When does severance of a joint tenancy take effect?

Held: The court held that negotiations between co-owners could sever a joint tenancy even if they were not finalized, provided there was an intention to sever.

Held Lord Denning MR:

• Severance by Mutual Agreement: Mutual agreement is a method for severing a joint tenancy. However, even if no enforceable agreement was reached, indications of a common intention to sever can suffice.

• Course of Dealing: Acts or negotiations that show a common intention to sever the joint tenancy can be sufficient, even if no formal agreement was made.

Held Sir John Pennycuick:

• Severance by Course of Dealing: Mutual agreement is one way to sever a joint tenancy, but a course of dealing can also indicate a common intention to sever. Even if no formal agreement is reached, actions and negotiations demonstrating the intention to sever are significant.